UK: OnStar: Connecting to Customers Through Telematics

A new Stanford case study, developed in collaboration between the Stanford Global Supply Chain Management Forum and Deloitte Research, looks at how OnStar, a wholly-owned subsidiary of General Motors Corporation, has grown from a small upstart business to become the world’s largest telematics provider in the automotive industry.

Through the convergence of wireless technologies, global positioning systems, and in-vehicle electronics, telematics provides drivers with customized information and services through the use of wireless voice and data communication systems. Examples include automatic airbag deployment notification, vehicle tracking, personalized information, real-time traffic data, emergency aid, and entertainment. The cornerstones of OnStar’s offering are safety and security. This includes roadside assistance, emergency help during airbag deployment, remote diagnostics and stolen vehicle tracking. However, OnStar also offers a 24-hour connection to services such as navigation and route guidance, and personal assistance with services such as hotel and airline bookings. By 2004 OnStar's subscriber base had grown to more than 2 million generating over 20 million customer interactions.

While OnStar develops new ways to demonstrate the full value if its services to customers, it is also building a platform for improving GM's integration of customer operations into supply chain and product development operations and create a digital loyalty network (DLN). OnStar’s growth and broadening of offerings allows GM to align itself closer to its customers, creating the potential to build customer loyalty, gain customer feedback and better design future vehicles to match customer needs.

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